Switzerland's economy is in great shape. Low debt. Low unemployment. Tons of exports.
In recent months, this economic strength has created a huge problem for Switzerland. Panicked investors around the world, who see Switzerland as a safe haven, have been buying Swiss francs like mad.
That made the value of the franc shoot up — which in has caused big problems for Switzerland.
On the show today, we look into the franc's crazy rise. Charles Wyplosz, an economist at the Graduate Institute in Geneva gives us the big picture:
The Swiss are proud of being politically neutral, but there is no economic neutrality. In a big part, their good economic health is directly due to fact that they are integrated in the world economy and that they are exporting all over the world. So the fairness is that if your customers are in deep, deep trouble, it would probably not be quite natural that you stay in top impeccable situation, while everyone around you is in deep trouble. I mean the Swiss dream of isolating themselves from trouble is just an impossible dream. They are part of the whole thing.
Subscribe to the podcast. Music: Metric's "Gimme Sympathy (Acoustic)." Find us: Twitter/ Facebook.